The relationship between exercise capacity and all-cause mortality in subjects with type 2 diabetes as well as possible racial differences regarding this relationship were assessed in African American (n=1,703) and Caucasian (n=1,445) men. Over the 7.3-year follow-up, the adjusted mortality risk was 23% higher in African Americans than in Caucasians (95% CI: 1.1-1.4). A graded reduction in mortality risk associated with increased exercise capacity was observed for both races. A significant interaction between race and fitness categories was observed. The risk of mortality was 43% lower for moderate-fit and 67% lower for high-fit Caucasians. For African Americans, these reductions were 34% and 46% for moderate-fit and high-fit men. Thus, this study found that the reduction in all-cause mortality in type 2 diabetic patients is graded and more pronounced in Caucasians than in African Americans.